"It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price."

Warren Buffett

The **Solvency Score **is a metric used to assess a company's long-term solvency risk. It is an essential tool for investors to evaluate the financial health and risk profile of a company over the long term.

## Calculation

The **Solvency Score** is generated using a multi-factor algorithm that takes into account a range of financial ratios and indicators such as Debt to Equity Ratio, Interest Coverage Ratio, and Current Ratio, among others. These factors are normalized and weighted to produce a single score on a scale of 0 to 100.

## Interpretation

0-30 |
High risk of insolvency |

31-69 |
Moderate risk |

70-100 |
Low risk of insolvency |

## The Bottom Line

The **Solvency Score** is a powerful, data-driven metric that offers an instant snapshot of a company's long-term financial health.